New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

Joel Robinson

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.

The project, to be known as Capella Residences Brisbane, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.

The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.

The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.

The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.

<img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" />

Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.

Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.

The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.

The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.

The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.

"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.

"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."

Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.

"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.

"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."

Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.

"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.

"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."

Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.

Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.

The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.

<img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" />

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.

"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.

"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.

"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."

<img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" />

Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.

The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.

"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.

"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."

Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.

"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.

"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."

Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.

[smartcode_project_cta:default project_id=113271]

Lewis Land targets first home buyers at latest Harbour Shores release, Solis

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

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Affordability nationwide improved in the five years between 2011 and 2016 – that’s one of the more interesting facts to emerge from the 2016 Census data. 
An analysis by population analysts profile.id finds that the median mortgage payment in 2011 was $1,800 per month, but in 2016 it was $1,755. Over the same period the median household income increased from $5,330 to $6,205 per month. 
Of course, these are national average figures and they conceal myriad differences among the various states and cities. The biggest improvements in affordability, in terms of the reduction in mortgage payments, occurred in Queensland and the ACT. 
But there was even a small improvement in New South Wales, notwithstanding the big price rises in Sydney. 
Unsurprisingly, the biggest single factor in the reduction in mortgage payments was the decrease in interest rates. In 2011, the official cash rate was 4.5 percent and by 2016 it was 1.5 percent. Glenn “the Census expert” at profile.id says: “While the banks have passed on less and less of these cuts, it’s certainly the case that mortgage interest rates being paid by home owners in the past five years have reduced.” 
Perhaps the most startling fact is that the median mortgage payment for the Greater Sydney area was the same in 2016 as it was in 2011. And in Melbourne the median mortgage payment reduced slightly. 
The analysis examined mortgage payments for people aged between 18 and 34 who have a mortgage and don’t live at home with their parents – i.e. looking at the profile most likely to include first-time buyers. This is where the improvement in affordability was actually the highest, in terms of the reduction in median mortgage payments between 2011 and 2016. 
In the ACT, for example, median monthly payments dropped from $2,460 to $2,140, while in Queensland they fell from $2,165 to $1,958. Even in NSW, the median mortgage payment for this demographic dropped from $2,182 to $2,129. 
As Glenn points out: “There are very large falls in mortgages in the ACT ($320/month) and Queensland ($207/month). But even in Sydney and Melbourne, which have seen rapid escalation of housing prices, there have been modest declines in what 18-34 year olds are actually paying on their mortgages when they have them. 
“So in fact, a larger part of the decline (in mortgage payments) is in this key group. Probably because they have the larger mortgages and are more affected by changes in interest rates. So, while we have seen that children are delaying leaving home longer (though not much longer), once they do leave home they are actually paying less to buy a house.” 
These figures put another perspective on the general issue of housing affordability. 
But here’s the thing: every day the Hotspotting team scours media sources for information on residential real estate and, to date, we haven’t found any coverage of this very thorough and professional analysis of the affordability situation. 
No newspaper or other media outlet has run this story. Why not? Because it doesn’t suit the pre-conceived storyline, the much-beloved theme of everyone being priced out of the market. 
Another reflection of media bias on this subject came earlier in the year when one of the major affordability indexes published the latest findings. There were two scenarios: in annual terms, affordability had improved in most states and territories, but comparing the latest quarter to the previous quarter, affordability had declined in most states and territories. 
Every media outlet which ran an article in this report focused on the quarter-to-quarter deterioration and totally ignored the annual improvement. 
Media has created a “crisis” by selectively using data to support the favoured theme which says no one can afford to buy any more. It’s obviously rubbish but that’s what they keep telling us – and so when someone runs a survey on the issue, a majority of citizens say they believe young people are priced out of the market everywhere. 
It’s sad how dishonest our media is and also sad how easily people are deluded by it. 
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
 
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terryryder-YECXbqmri2

Affordability actually improving in terms of mortgage payments: Terry Ryder

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It is the age-old query of anyone with capacity to invest. Which is the better investment - shares or property?
After allowing for costs, residential property has often provided a higher return than shares according to many studies. Both tend to be far superior to cash and bonds.
But the answer invariably depends on the selected timeline involved.
Property wins in the decade or two decades to December 2015, outperforming Australian shares for the lowest and highest marginal tax rates after gearing, but shares win in the 13 year period to December 2016. That's for an average Australia-wide property investment scenario, with Sydney property investors enjoying far greater success than say regional NSW investors.
Hence the determination really is best answered by your individual capacity, stage of life circumstances, the desired diversity and your outlook.
Much comes down to your risk tolerance, so for some bank deposits rank as the wisest place for savings. 
The recent spending spree by investors on Sydney property was hardly short-term speculation- rather actually driven by the flight to longterm surety with investors seeking a mix of yield and capital gain along the way to hopefully funding their looming retirement years.
Its exuberance almost ended up pushing too far, but it appears the regulatory cooling measures has nipped the Sydney boom back from the edge, before it gave way to a hurtful price reversal.
Housing investment is less volatile than the wild ride of the sharemarket.
And for many investors the actual bricks and mortar seem safer than the stockmarket and its share scrip.
You can always drive past your investment property and see it.
But those share certificates in the bottom draw of the desk in the home office can become totally worthless. These shares can also suffer at the hands of a market of short sellers, speculators who don't want shares to necessarily go up in price.
But property does also offer a much lower level of liquidity and diversification. Investing in the stock market comes with virtually no transaction costs apart from capital gains tax when you exit your investment. Shares potentially offer income and low costs as you don’t directly pay pesky maintenance costs, council rates and land tax bills. 
Your labour of love as an investor can see worrying times when the property is vacant.
A recent analysis from a cashed-up sharemarket investment company rightly warned the very long-term investment chart showed several occasions of property prices going down by significant amounts.
However the example it highlighted was the crash in 1896 when it took six decades before property prices recovered to their previous levels in real terms.
As we all know, past returns are not a good guide to future returns.
And the world is vastly different for the current generation of investors than pre-Federation 1896.
Investors do need to envisage worse case scenarios in our modern times, because yes price growth isn't guaranteed, and indeed prices can go backwards.
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jchancellor-FAypfDUnLy

Which is better: Shares Vs Property

Some innovative mortgage data: RBA assistant governor 

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Australia is experiencing a long-running residential construction upturn, beginning around mid-2012.
Residential construction tends to be very sensitive to interest rates.
So falling interest rates from late 2011, combined with strong population growth, increased foreign demand and pent up demand from underbuilding in previous years meant that a boom was inevitable.
This building boom came at a very beneficial time and helped to offset some of the negative effects from the decline in business investment as the mining construction boom wound down.
The leading indicators of building activity suggest that the current residential construction boom has peaked.
So in this note we take a look at how the economy has benefited from the latest construction cycle and how it’s likely to fair as activity slows.
A typical residential construction upturn has both direct and second-round benefits.
The direct benefits include the additional building activity as well as the jobs created to undertake the additional building work.
Second-round benefits include additional spending elsewhere in the economy as a result of this new construction employment.
For example, spending on furnishings and household appliances for use in the new dwellings.
And then the additional employment as a result of this spending.
In terms of the direct benefits, residential construction upturns since the late 1970’s have on average contributed 2.2 ppts to GDP (chart 1).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-1.jpg" alt="">
The latest cycle has added 1.6 ppts.
Upturns also contribute to jobs growth. Employment in residential construction, has expanded by 38%, or by 31.2k jobs since 2012 (chart 2).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-2.jpg" alt="">
This is well above the 6.4% growth rate for total employment over the same time frame.
These jobs have been concentrated in NSW, Victoria and Queensland where the bulk of the residential construction has taken place (chart 3).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-3.jpg" alt="">
Other building construction jobs, which may include some workers employed in residential construction, have also expanded strongly over the latest residential construction upturn, with 38k extra jobs.
Jobs in construction services have also grown a little faster than total employment growth. Although this includes jobs related to all types of construction activity.
This expansion (and likely contraction) in residential construction jobs is much smaller than the rise in mining sector jobs during the mining boom.
We discuss this more in the next section.
The ABS has estimated that every $1m spent on residential construction generates 17 jobs on a full-time equivalent basis.
This includes jobs in the construction industry as well as the additional jobs outside the industry created as a result of flow on spending.
Spending on dwelling construction has risen by $6.2bn over the cycle so far.
So according to these multiplier effects approximately 105k jobs in total have been added to the economy.
The ABS has also estimated other second round benefits.
For instance, for every $1 spent on residential construction, $1.31 worth of spending is generated elsewhere in the economy.
One area where we have seen this extra spending show up is in the category of household furnishing and fittings including household equipment, floor coverings, household appliances and tools.
Since the latest residential construction boom began, spending in these categories has lifted by 17.5% compared to 10.7% for total household consumption spending (chart 4).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-4.jpg" alt="">
This has been a positive for the retail sector which has faced many headwinds in recent years.
Other beneficiaries of residential construction booms are the State governments who collect stamp duty revenues.
The NSW, Victorian and Queensland State governments have all had solid growth in stamp duty revenues from the sale of residential properties.
Large house prices gains, particularly in Sydney and Melbourne, and decent turnover has also boosted stamp duty revenues.
In NSW, for example, stamp duty revenues have more than doubled over the past six years and now make up 32% of tax revenues compared to 22% in 2010/11.
We think the latest residential construction cycle has peaked. Residential building approvals peaked in August last year and have fallen by around 10% since then (chart 5).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-5.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-5.jpg" alt="">
However the pipeline of activity remains at record highs which means we are likely to see another quarter or two of growth in construction work done (chart 6).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-6.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-6.jpg" alt="">
We also saw a weather-related fall in residential construction activity in Q1.
This means that we are also due some payback in Q2.
However we think the downturn in the latest residential construction cycle will be gradual, and we expect an extended plateau where residential construction activity remains at a high level over 2017 and into 2018.
This is because a much larger share of approvals have been for multi-units than in previous booms (chart 7).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-7.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-7.jpg" alt="">
Multi-units have a much longer build time, averaging 6 quarters, compared to 2-3 quarters for detached houses.
Indeed some high rise apartments can take 2-3 years or more to build.
This prolongs the construction cycle.
On average, residential construction downturns have subtracted 1.5 ppts from growth.
Our forecasts running to the June quarter 2019 have dwelling construction subtracting just 0.5 ppts from growth.
The smaller subtraction from growth than average reflects the fact the upturn was a little smaller.
Also, strong population growth has lifted underlying housing demand.
We estimate that underlying demand now sits at 185k compared to 155k in mid-2012 at the start of the boom.
This means that the “normal” level of construction activity necessary to meet demand is higher than it was a start of the upturn.
We also expect renovation activity to pick up.
The fact that interest rate are likely to remain low for quite some time is also a factor behind our forecasts for a relatively shallow downturn.
We expect the RBA will leave the cash rate on hold until late 2018.
And that the tightening cycle from there on will be fairly cautious.
In terms of the number of dwelling commencements we expect a slowing to 200k in 2017/18 down from 217k in 2016/17.
And then a further decline to 185k in 2018/19.
For employment, we expect that job losses will occur fairly gradually alongside the gradual decline in activity.
This will help the labour market better absorb these workers.
There are a number of other reasons to expect that the disruption from the downturn in residential construction jobs to be minimal.
Firstly, the jobs downturn will be largest in NSW, Victoria and Queensland, the States where the lion’s share of building activity and gains in residential construction jobs have taken place.
These States all have decent population growth.
And two out of three of these States, NSW and Victoria have strong jobs markets. In NSW the unemployment rate is under 5%, and at a level consistent with full employment.
In Victoria, employment has been growing a solid pace and well above the national average.
Employment growth has also picked up in Queensland in recent months.
Secondly, both NSW and Victoria have also seen a lift in non-residential building approvals (chart 8).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-8.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-8.jpg" alt="">
So additional employment in the non-residential sector may provide a partial offset to some of the jobs losses in residential construction.
In fact the ABS estimates show that the multiplier effects from non-residential construction activity are even larger than for residential construction.
They estimate that $1m spent on non-residential construction generates 24 jobs on a full-time equivalent basis.
And for every $1 spent on non-residential construction, $1.47 worth of spending is generated elsewhere in the economy.
Thirdly, all three of these States have a large pipeline of infrastructure spending still to come from their respective State governments which should also add to jobs growth, especially construction.
The Federal government is also planning a large amount of infrastructure spending over the next 10 years which will also boost employment across the country.
Renovation activity should also provide an offset to lower new residential construction activity.
Renovations usually account for a little above 40% of residential construction activity.
However the share is now very low by historical standards (chart 9).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-9.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-9.jpg" alt="">
Current rates of spending on renovation activity also look low relative to house price growth (chart 10).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-10.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-10.jpg" alt="">
Strong house price growth usually encourages more spending on renovations.
There should be some catch up in renovation spending over the next few years.
Comparing to the recent ramp up and then decline in mining sector jobs, the decline in residential construction jobs will be much smaller.
Mining employment trended higher over a nine year period, rising from around 80k in 2003 to reach a peak of around 275k in mid-2012.
Since the peak of the mining boom around 50k jobs have been lost.
Although more jobs losses are likely as the construction of LNG facilities wind down.
These jobs losses have been concentrated in WA and Queensland. Queensland has had a construction boom and growing tourism sector to help offset lost mining jobs and activity.
But for WA there has been little in the way of other growth drivers to take the place of mining.
As a result economic conditions have been very soft for a number of years in WA.
In terms of the retail sector, a return to more normal growth rates for spending on household furnishings, furniture, appliances and other goods, would be another headwind for the retail sector to contend with.
Kristina Clifton is an economist with the <a href="https://www.commbank.com.au/" target="_blank">Commonwealth Bank</a>.
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j.ballantyne1990-6AQqhLzZaK

Residential construction: will boom lead to bust? CBA's Kristina Clifton

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Building a home can be substantially cheaper for first home buyers than buying one amid the trend that shows home building is at its highest in recent history, says new research by property ‘matchmaking’ service Houseandland.com.au. 
The study, conducted in the last month, comes at a time when potential first home owners are looking to take advantage of concessionally taxed deposits within superannuation as part of the 2017/18 budget. 
The government has provisioned topping of the superannuation savings by $30,000 which can then be used towards a home deposit in a move to encourage first home buyers. 
Figures from houseandland.com.au show that building a home is on average 13.9% more affordable than buying a move-in-ready home ($361,096 and $419,400 respectively), whilst house and land packages can produce an 11.1% saving.
The report also found that a quarter (25%) of consumers intending to buy their first home within the next five years will build their own home. Amongst these first time home builders, almost three quarters (74%) would build for reasons relating to personalisation and more than 2 in 5 (44%) for reasons surrounding the ability to be creative. 
In fact, 4 in 5 (79%) home owners and intending first home buyers alike, agree that building their own home would let them see their dreams come true, led by Gen Y at a high 84%. 
<a href="https://www.propertyobserver.com.au/images/2017/08/14/HomeBuilding.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/14/HomeBuilding.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/08/14/HomeBuyers.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/08/14/HomeBuyers.png" alt="">
Dean Kyros, founder of Houseandland.com.au, also said that home building was at its highest in recent times.
“Overall, the proportion of Home Builders is currently at its highest point in recent history. 35% of those who bought a home in the past 2 years are Home Builders. This is higher than 2-4 years ago (20%), 5-9 years ago (27%) and 10-19 years ago (18%),” he said.
“With property market prices increasing, it’s not surprising first home buyers are increasingly looking to more economical means of creating their dream home. By comparing house design, land for sale and land estate, as well as fixed-price house and land packages, first home buyers can achieve significant savings through building, all whilst customising their home to their personalised preferences,” says Kyros. 
Houseandland.com.au connects potential buyers with current house designs and recently said its new technology was an industry first. 
Houseandland.com.au also revealed that 84% of Gen Y home owners and intending first home buyers are turning to software to find their ideal property.
It’s no surprise then that businesses are turning to algorithms to meet the growing demand in tailored purchasing, with three quarters (73%) of home buyers and builders alike using online platforms to lead their new home purchase, whilst 23% consider display homes a thing of the past, Houseandland.com.au said.
The report was conducted by Lonergan Research on behalf of houseandland.com.au in accordance with ISO20252 standard. 1,097 Home Owners and Intending First Home Buyers were surveyed between 28th June and 3rd July 2017. Surveys were distributed throughout Australia including both capital city and non-capital city areas. After interviewing, data was weighted to the latest population estimates sourced from the ABS. 
 
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jonathanchancellor-7SQnKwU6yx

First home buyers can save up to $60,000 by building their own: Research

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A Victorian warehouse is soon to go under the hammer through Colliers International.
The <a href="https://www.realestate.com.au/property/79-83-abercrombie-st-chippendale-nsw-2008" target="_blank">79-83 Abercrombie Street</a> property in Chippendale is a three-story warehouse. 
The inner-city suburb of Chippendale is witnessing a growing trend with its industrial buildings being brought back to life. Old warehouses are being converted for creative commercial use, student accommodation and residential, leveraging off the increased expenditure from institutions such as UTS, Sydney University and Notre Dame, noted Colliers.
The listing agents are Miron Solomons and Matt Pontey of Colliers International.
The Abercrombie Street property has a colourful history, previously housing  J.C. Goodwin &amp; Co, glass importers, bevellers and silverers who were first established in the area in 1875. 
“The firm started at 79-83 Abercrombie Street and by the 1930’s had expanded to four factories in Myrtle Street. The building to this day, retains its local significance with the facade emblazoned with the company’s name,” said Miron Solomons.
The property was recently restored and sits on 393 sqm of land on the corner of Abercrombie Street and Myrtle Street. 
Boasting high ceilings and exposed timbers, the building is a throwback to Chippendale’s past.
The influx of new mixed use project in the nearby Central Park development has seen an increasing push in the surrounding area for Chippendale’s industrial warehouse past to be transformed to alternate uses.
“Chippendale is now at the forefront of being Sydney’s SOHO, south of the Sydney CBD this suburb is on the path to being one of Sydney’s most hotly contested locations,” said Matt Pontey.
“79-83 Abercrombie Street exudes New York loft style with exposed timber beams and an enviable ceiling height, abundant parking and loading dock, the building is a special piece of history that should not be overlooked.”
He said Colliers was witnessing a huge demand in the city fringe for creative office space conversions, as emphasized by the recent purchase of a Chippendale warehouse at 14-16 Buckland Street for $11.25m to UTS.
The property sold in 2001 for $2,120,000, according to CoreLogic data. 
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Period warehouse in Sydney's Chippendale up for auction 

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Just half the apartments on offer in Castle Residence, a $380 million residential project in Sydney’s CBD, sold at its weekend launch.
Located at 203 Castlereagh Street, Castle Residence is the flagship Australian project for international property developer, Shanghai United.
The sales were topped by the 300 sqm penthouse at the project which sold for $18 million ahead of the launch. 
The residential development will incorporate a redevelopment of the heritage listed Porter House into a luxury 121-room boutique hotel in partnership with AccorHotels.
Built in 1876, the original sandstone arches of the five-storeys high, heritage-listed Porter House – long considered “an ornament” to this part of the city – will be extended into a modern structure that floats overhead.
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The premium hotel services will also be available to residents. 
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The building has been designed by architectural firm Candalepas Associates.
The project is being marketed by CBRE.
At the Saturday launch, the highest priced apartment sold was a three-bedroom apartment on the upper floor for $5.8 million while a number of two-bedroom apartments with views also sold for between $3.5 million and $4 million.
CBRE managing director David Milton said there was a broad mix of buyers at the launch, ranging from owner-occupiers to investors.
“We found buyers were eager to secure themselves a piece of real estate in the highly sought after Hyde Park precinct due to the unbeatable proximity to all Sydney CBD has to offer,” Milton said.
He added that many buyers were interested in the dual key apartments, which allow for flexible living with the buyer residing in one side of the apartment looking to rent out the adjoining unit.
Shanghai United is a $19 billion company based out of Shanghai.
Proximity to the CBD makes the Hyde Park precinct one of Sydney’s most sought-after addresses with a recent CBRE report suggesting there was increasing demand for residential apartments in the CBD.
The report said the popularity of two-bedroom CBD apartments showed no signs of abating, comprising 49% of sales.  There was also continuing strong demand for 3+ bedroom luxury apartments in the city from downsizers and empty nesters.
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Castle Residences in Sydney CBD secure 50 percent initial sales

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Sydney's beachfront Collaroy Hotel has sold to the Hemmes-owned Merivale group in an off-market sale.
The Collaroy Hotel was bought by Mitchell Waugh and others in 2010 and underwent wholesale renovations in October 2014 and was sold by Andrew Jolliffe, Asia Pacific Director of Ray White Hotels.
According to reports in The Australian, Justin Hemmes, chief executive of Merivale, said The Collaroy was in a “truly spectacular” location, with sweeping views of the ocean and sand literally at its door step.
“This is a really exciting addition to the group, and one that will beautifully complement what we’re creating at The Newport,” The Australian reported.
I love the northern beaches; it is a magnificent area and we are incredibly proud to be part of it."
The nearby Newport Arms Hotel was sold to Merivale in March 2015. The beachside watering hole also joins Merivale’s other northern beaches local, Papi Chulo in Manly.
Prior to these purchases the group concentrated on the inner Sydney market.
The deal saw Mitchell Waugh’s Public House Management Group (PHMG) sell the hotel and although none of the parties involved have revealed the figure Merivale has paid, many media outlets are putting the deal at around $21 million.
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Sydney's beachfront Collaroy Hotel sold to Hemmes-owned Merivale 

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Auction volumes rose to their highest level in three months, according to CoreLogic, with Canberra taking the mantle of best selling capital city as cracks emerged in the traditional auction powerhouse, Melbourne.
The number of homes taken nationally to auction rose to 2,000, compared with 1,850 over the prior week.
The preliminary auction clearance rate of 70.5 per cent was up on last week’s final 68.2 percent clearance rate.
Over the corresponding weekend last year, the clearance rate was higher at 75 per cent but on less stock, as just 1,471 auctions were held.
Canberra was the weekend's strongest auction market with an 87 percent success rate.
Its top sale was a five bedroom Forrest house sold for $2.875 million.
Located at <a href="https://www.realestate.com.au/sold/property-house-act-forrest-125971866" target="_blank">27 Tasmania Circle</a>, the home was built in 2012 on its 1367 sqm block opposite historic Collins Park.
Luton Properties also sold the nation capital's cheapest offering, a two bedroom MacGregor townhouse for $345,000.
Located at <a href="https://www.realestate.com.au/sold/property-townhouse-act-macgregor-125979282" target="_blank">13/204 Macfarlane Burnet Avenue</a>, the property is currently tenanted at $360 per week.
Across Canberra a total of 57 auctions were held, compared to 69 last weekend.
Canberra’s preliminary clearance rate was well up on the 70 percent of the previous weekend.
First home buyers have surged into the ACT market in strong numbers, according to Domain's chief economist, Dr Andrew Wilson.
Adelaide had the next best success rate, with 72.9 per cent of the 59 reported results sold.
It was a big improvement over the previous week’s 63 percent clearance rate and the 68.8 per cent one year ago.
Adelaide's offering ranged between an uninhabitable four bedroom house at <a href="https://www.realestate.com.au/property-house-sa-ingle+farm-123655150" target="_blank">29 Aranga Avenue</a>, Ingle Farm sold for $297,000 by the mortgagee and a $1.37 million sale of a four bedroom <a href="https://www.realestate.com.au/property-house-sa-campbelltown-125928814" target="_blank">Maynard Avenue</a>, Campbelltown house sold for $1.37 million.
With a 72 percent success rate, Sydney was next strongest narrowing pipping Melbourne’s preliminary clearance rate of 71 per cent.
"Melbourne has remained the stronger performer for many weeks, but it was possible that Melbourne’s final clearance rate could drop below the 70 per cent mark for the first time since July last year," CoreLogic's auction analyst Kevin Brogan suggested.
Domain's chief economist, Dr Andrew Wilson noted Melbourne was being "weighed down" by a surge in pre-spring listings after an unusually hot winter market.
The Melbourne clearance rate was down from last week’s final clearance rate of 73.9 per cent and lower the clearance rate for the city one year ago (78.9 per cent).
Melbourne was host to 948 auctions, higher than the 911 held last week, and substantially higher than a year ago when there were 605 Melbourne auctions held over the week.
Of the nine Melbourne sub-regions, the strongest performer, in terms of clearance rate was the North East with a 78.6 per cent success rate.
Sydney’s preliminary clearance rate this week was 72 per cent across 625 notified auction results from a total of 782 auctions held across the city.
"Looking back at this weekend last year, 635 auctions were held across Sydney and a clearance rate of 78.3 per cent was recorded," Brogan noted. 
An $8 harbour front at Longueville was the nation's most expensive weekend auction sale.
Built in 1970, the five bedroom property was last sold in 2006 for $5 million.
It features a split level design on its 1277 sq m block at <a href="https://www.realestate.com.au/property-house-nsw-longueville-125980638" target="_blank">40A Mary Street</a>.
The offering through McGrath Estate Agents came with pool, jetty, boatshed and deep mooring.
Melbourne's top two sales were development sites including a Camberwell site sold at $5.01 million.
Located at <a href="https://www.realestate.com.au/sold/property-house-vic-camberwell-125960974" target="_blank">5-7 Braeside Avenue</a>, the 1550 sqm site came with townhouse plans by Alta Architecture.
The property, approved for eight homes, sold through Marshall White.
The next top price was at Port Melbourne with a site fetching $4.75 million.
The Chapman Memorial Hall sits on a <a href="https://www.realestate.com.au/sold/property-other-vic-port+melbourne-126067106" target="_blank">711 sqm Ross Street site</a>.
An art deco Prahran house sold for $4.2 million. <a href="https://www.realestate.com.au/sold/property-house-vic-prahran-125959154" target="_blank">The Linden Court</a> home sold at $2,535,000 in 2011. 
A 1933 six bedroom Toorak home at <a href="https://www.realestate.com.au/property-house-vic-toorak-125941454" target="_blank">3 Myrnong Crescent</a> was passed in on a vendor bid of $7 million.   
Brisbane was host to 100 auctions with the 63 results reported, recording a preliminary clearance rate of 54 per cent.
Last week, auction volumes across the city were higher with 156 auctions held across the city and a 48.7 per cent clearance rate.
Brisbane cheapest result was a three bedroom Darra townhouse at $316,000.
Located at <a href="https://www.realestate.com.au/property-townhouse-qld-darra-125972834" target="_blank">102/35 Ashridge Road</a>, the property was marketed by Ray White as ideal for savvy investors with its likely rent estimated to be $370 to $390 per week.
In Perth, 32 auctions took place with 10 results reported so far.
Perth’s preliminary clearance rate was 40 per cent.
 
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Cracks emerge in oversupplied Melbourne August auction market

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<img src="https://counter.theconversation.edu.au/content/82264/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
It sounds like good news. After summoning the heads of Australia’s major electricity retailers to Canberra, Prime Minister Malcolm Turnbull yesterday announced that the government will take “decisive action to reduce energy prices for Australian families and businesses”.
But look a little closer. Yes, the retailers have agreed to some small but important measures that will make it easier for customers to find the best electricity deal. But there is no guarantee energy prices will fall. And your electricity bill will only be lower if you, the customer, take action.
Retailers’ current advantage
At the moment, retailers typically encourage consumers to sign up by offering a discount on the bill for a fixed period – normally one or two years. After this period expires, customers usually face higher prices for their electricity. 
Some lucky customers will be put on an equivalent tariff and their electricity costs will not change much. Others will lose the discount – which can be as much as 30% of the bill. And some unlucky customers will be placed on the retailer’s “standing offer” – usually the most expensive plans in the market. 
All the retailers have to do is to send you a letter informing you of the change. Lots of customers find those letters too confusing or time-consuming to read, and throw them in the bin. Those who do read and understand it don’t necessarily take action: almost half of Australian households have not changed their electricity retailer in more than five years.
How the new deal could help you
Under the deal that Turnbull has brokered with the retailers, every consumer on a lapsing deal will be sent more comprehensive and helpful information that will encourage them to switch. This will include details of cheaper available offers, and information from websites that compare prices across the various plans and retailers. 
Second, as the Grattan Institute recommended in our March report, Price Shock, retailers will now have to be more explicit about what happens if you don’t sign up to a new offer. Specifically, that means detailing exactly how much it is going to cost you. 
Third, retailers will have to report to the Australian Energy Regulator how many customers are on lapsed deals. This may seem like a lot of red tape for not a lot of impact. But a lack of information on how many customers are on what type of deal has been a major barrier to understanding what is happening in the electricity market. This increased transparency will encourage retailers to reduce the number of customers they have on lapsed contracts. 
The new deal includes other welcome measures, mainly designed to help poor households reduce their bills and make sure they do not face increased costs as a result of late payments. (To be fair to the retailers, they already do a lot for customers whom they consider to be “in hardship”.) 
It’s still down to you
The deal will doubtless improve the retail electricity market. Retailers will take on more responsibility for helping their customers onto a better deal. And those customers who are most at risk from very high prices will get more protection. 
But these are only incremental steps and do not ensure that customers will pay less for their electricity. While more simple information will be available, it will still be up to the consumer to act on it. The bottom line remains the same: if you want to pay less for electricity, you need to search for and sign up to a cheaper deal. 
Customers should be under no illusions. Energy prices are still going to be high for as far as the eye can see. 
Gas prices remain way above historic levels. Wholesale electricity prices are also high. Network costs – the price we pay for the poles and wires – have grown enormously over the past 20 years, and ultimately those costs find their way onto our bills. And the much-needed policy stability on greenhouse emission reductions that can put downward pressure on electricity costs remains elusive.
Under the new rules, consumers might be able to get a cheaper deal, but this doesn’t mean they will get a cheap deal. 
It may be months before we know whether the new measures are enough to encourage consumers to go out and find a cheaper plan or retailer. The danger is that, in a year’s time, too many consumers will still be stuck on expensive electricity deals. 
Even if huge numbers of consumers switch, there are still fundamental issues in Australia’s electricity market. Prices won’t come down across the board until these are resolved. 
This is a welcome move by the government. But it only addresses a fraction of the problems in the electricity market. The big question for the prime minister is, what next?
<a href="https://theconversation.com/profiles/david-blowers-141792" target="_blank">David Blowers</a> is Energy Fellow, Grattan Institute and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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